Tuesday, November 04, 2008

Technical Picture - Election Rally - Overbought

Yesterday's NRIB led to expansion - election rally. We are now in a resistance zone and very overbought. The VIX has retraced 62% into support.


The USD and gold are on track as discussed in previous posts. Gold coming into a resistance zone.

2 comments:

john said...

A reasonable longer-term play is to be short the dollar, long gold, long long-term inflation ...me, I'm short long-term US debt through TBT.

But what if Obama elects to save the greenback? Could he be willing to take the pain? I doubt it ...he is a politician. But still, he does hang around with Volker.

Jamie said...

John,

I'm finding it all a little confusing at the moment. Decided to sell my overnight gold position after the morning swing high this morning.

The markets don't like the unknown. The new President Elect is unknown for the moment and I'll let the market digest that idea before I decide what to do next.

Cheers!